Private sector economy of the famous city of United Arab Emirates slows and especially affects tourism and travel industry.
This weak growth, to a certain extend was the result of the small decline of business activity of travel and tourism companies. Meanwhile other sectors like construction, wholesale and retail sub-sectors had slower increment in activity in October as Emirates NBD Dubai Economy Tracker shows.
Khatija Haque, head of Mena research at Emirates NBD stated that despite this turmoil in October they expect activity in travel and tourism enterprises as the winter high season is coming. As far as the data about construction sector, he said that it’s very positive and indicates growth in new orders and output in October in spite of increased worries about government spending in the face of sustained low oil prices.
As the survey report said, the growth in new orders had really weak rate. On the other hand, the private companies displayed the weakest rate in their stuff numbers in nearly four years in October.The confidence of the business in the private sector was declined in October, a fact that is also a result of global economic conditions. Moreover, the degree of optimism was equal with May's three-year low.
The Emirates NBD report mentioned that the economic activity can be boosted as the forecasts about regional markets shows and also because of new marketing strategies and projects ahead of the Expo 2020.
It’s said that big competition between suppliers had role in restricting price increases for inputs. Private enterprises in the country cut their offering prices for the ninth progressive month as competition for new work strengthened.The International Monetary Fund stated UAE economic situation is expected to moderate because of lower oil prices. Non-oil development is anticipated to ease back to 3.4 per cent in 2015, before expanding to 4.6 per cent by 2020 because of all the actions around Expo 2020.